With the deep analysis of the above alternatives, it is recommended that the company should select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the company to not only introduce new and innovative items in the market it would likewise lower the high expenditures on R&D under alternative 2 and increase the earnings margins. It would make it possible for the company to increase its share rates as well, as investors want to invest more in business with considerable R&D spending and boost in the overall worth of the business.
Action and implementation Strategy
Strategy can be implemented successfully by developing certain short term in addition to long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Toys R Us Japan need to carry out various activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brands, which produce most of its income.
• Analyze the existing target audience in addition to the market sector which is not consist of in the company's circle.
• Examine the current financial information to determine the quantity that must be invested in the R&D and acquisitions.
• Analyze the possible investors and their nature, i.e. do they desire long term benefits (capital gain), or the want early earnings (dividend). It would let the business to understand that just how much amount must be invested in R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the business has prospective experience to deal with. Obtain most beneficial companies with a strong dedication to health, to develop the customer's understandings in the right direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Toys R Us Japan values and vision and to avoid possible risk of sunk expense.
Long Term Plan (1-10 years)
• Get organizations with health in addition to taste aspect, as the base for the Toys R Us Japan as a business producing healthy products has been constructed under midterm plan and now the business could move towards taste aspect too to understand the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to build brand-new items.
